North Carolina Down Payment Support Programs
Online Merchant account - The North Carolina Housing Finance Agency got two excellent plans for First Time Home Buyers. These programs are the Mortgage Credit Certificate and the deposit Assistance System.
If you meet the requirements for one of those plans and also you buy a house between January 1, 2009 and December 1, 2009, you could also be eligible for the $8,000 tax credit only enacted into law.
First, who is a first-time Home Buyer? A first-time Home Buyer is someone who has not owned a home in the prior three years. That is exactly the same qualifying definition.
A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with low and average incomes. All home owners can claim an itemized deduction.
It is possible to claim 20% of the interest you pay on your mortgage as a credit in your federal income taxes, if you are eligible for the MCC. You can save up to $2,000 on your taxes.
Should you qualify for 2009, for the MCC, you may manage to unite this. This could reduce the tax liability of a buyer's by $10,000.
Who qualifies for an MCC is based on your own income as well as the purchase price of the home you are purchasing. Household income means the “gross income of the mortgagor and any other person anticipated to live in the dwelling who's 18 years old or older.”
The income and house price limitations that apply in Durham Orange and Chatham Counties are listed below.
MCC Income Limitations 1 Individual $61,500 2 Persons $61,500 3 Men $70,500 4 Men $70,500
MCC Sales Price Limitations New House $220,000 Existing Home $210,000
Who Qualifies for Down Payment Assistance?
Home buyers that need help with their deposit and closing prices may be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The purchaser just needs to pay $1,000 of their own funds and the load would pay up to $8,000 of the remaining balance.
This plan has more stringent income limitations than the MCC program summarized above. Like the MCC program, it might be used in combination with the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The deposit help, however, can not be used together with the MCC. This is an either or scenario.
House price limits that apply in Orange, Durham and Chatham Counties and the income are given below.
Down Payment Assistance Income Limitations
1 Man $39,950 2 Men $45,650 3 Men $51,350 4 Individuals $57,050
Down Payment Support Sales Cost Limits New House $210,000 Existing Dwelling $210,000